10th May 2011 17:57
Immediate Release | May 10, 2011 |
DQ Entertainment plc
("DQE" or the "Group")
Indian subsidiary financial results for the quarter ended 31 March 2011
and business update
DQE Entertainment (International) Limited ("DQE India" or "the Company"), the Bombay Stock Exchange listed, production and distribution company, which is 75 per cent owned by DQE is pleased to announce un-audited financial results for the quarter ended 31 March 2011 prepared under Indian GAAP.
Full details of the DQE India un-audited results are available from the DQE India section of the BSE website (www.bseindia.com).
Financial highlights for the financial year ended 31 March 2011
·; Revenue for the year ended March 2011 is US$ 46.8m (2010: US$ 39.5m)*
·; EBITDA is US$ 18.6m (2010: EBITDA US$ 13.5m, Adjusted EBITDA US$ 15.7m)*
·; Profit before tax is US$ 8.3m (2010: US$ 6.1m)*
·; Profit after tax is US$ 6.9m (2010: US$ 6.0m)*
·; Order Book USD 112m*
* US$1: INR44.4. The reporting currency of DQE India is Indian Rupee (INR).
Operational summary
Despite the global economic downturn continuing to have some impact on our North American and Japanese markets, we have seen some signs of recovery in Europe. The board has proactively reacted to these trends over the last two years and continues to develop the Groups business model of self-sufficiency, by working more on collaborated as well as own Intellectual Property (IP) development. In particular, the Company is pleased with the continuing success and global acceptance of our internally developed 3D TV series "The Jungle Book" and is pleased with the take up to date and prospects of several other newly released programmes.
As above, we have continued to progress the animation value chain and have successfully moved into IP creation and distribution of animation content. We also intend to continue consolidating our portfolio of co-productions and productions of our own IP content by collaborating with International and national broadcasters, distributors, licensees and large independent producers especially in Europe and the USA.
Over the last four quarters we have steadily and strategically invested in the development and co-development of famous IP's including The Jungle Book, Peter Pan, 5 & IT, Charlie Chaplin, Iron Man, Lassie, Balkand, Omkar, Mysteries and Feluda, Suryaputra and over several mediums including Satellite TV, Free TV, Pay TV, Cable TV, IPTV, VOD and licensing revenue streams.
Market trends
With the wide variety of choices in terms of content and delivery formats available to consumers and the growing adoption of smart phones, we envisage significant growth in the app fuelled exploitation of content. Online and mobile video consumption of content is also expected to grow considerably.
Animation and VFX are expected to continue being a significant constituent of the global film and TV industry. Animation was among the highest grossing genres at the box office in 2010 with Toy Story and Alice In Wonderland topping the charts. Shrek Forever After, Despicable Me, Tangled and How To Train Your Dragon were other notable successes. While the market share of animation productions accounted for only seven per cent of films released in 2010, they represented 45 per cent of ticket sales and box office collections. Your Board envisages this trend continuing in 2011-12.
Tapaas Chakravarti, CMD & CEO, said:
Tapaas Chakravarti, Chairman and CEO, DQE said:
"3D continues to be one of the biggest trends sweeping children's entertainment worldwide and we aim to maximise our technology leadership and prowess to produce high quality stereoscopic TV series and feature films. There is already great market interest for this new viewing experience and we hope to bring the theatrical 3D experience into the homes of TV viewers worldwide.
DQE will continue to expand its portfolio of classical properties for worldwide exploitation across all platforms of audio-visual formats while Licensing and Distribution will add to the production revenues of the company.
Exploitation through newer delivery formats such as online and mobile content will be a focus area for exploration and growth for the company owned IP's."
Financial results
The financial results of DQE India for the quarter and the year ended 31 March 2011, prepared in accordance with Indian GAAP are summarised below:
Unaudited Consolidated Financial Results for the quarter and year ended 31 March 2011 | |||||
(Rs in million) | |||||
Sl.No | Particulars | For Quarter ended 31 March 2011 | For Quarter ended 31 March 2010 | For Year ended 31 March 2011 | For Year ended 31 March 2010 |
(Unaudited) | (Unaudited) | (Unaudited) | (Audited) | ||
1 | Net Income from Operations | 777.90 | 753.00 | 2,075.71 | 1,754.74 |
2 | Expenditure | ||||
a. | Production Expenses | 269.03 | 136.83 | 388.90 | 241.31 |
b. | Employees Cost | 207.08 | 206.69 | 814.93 | 635.13 |
c. | Other Expenditure | 39.73 | 173.87 | 190.86 | 322.82 |
d. | Depreciation and Amortisation | 109.02 | 89.34 | 343.52 | 273.78 |
e | Less: Expenditure transferred to Capital Account | (4.90) | (20.46) | (41.45) | (34.37) |
Total Expenditure [2a to 2e)] | 619.96 | 586.27 | 1,696.76 | 1,438.67 | |
3 | Profit from Operations before Other Income, Interest and Finance expense and Exceptional Items [ 1 -2 ] |
157.94 |
166.73 | 378.95 | 316.07 |
4 | Other Income | 65.77 | 1.83 | 104.91 | 11.33 |
5 | Profit before Interest and Finance expense and Exceptional Items [ 3+ 4 ] | 223.71 | 168.56 | 483.86 | 327.40 |
6 | Interest and Finance Expenses | 32.93 | 20.08 | 114.63 | 58.89 |
7 | Profit after Interest and Finance expense but before Exceptional Items. [ 5 - 6 ] |
190.78 | 148.48 | 369.23 | 268.51 |
8 | Exceptional items | - | - | - | - |
9 | Profit from Ordinary Activities before tax | 190.78 | 148.48 | 369.23 | 268.51 |
10 | Less: Tax expense | 2.30 | 17.59 | 63.75 | 1.79 |
11 | Net Profit from Ordinary Activities after tax [ 9 - 10 ] |
188.48 | 130.89 | 305.48 | 266.72 |
12 | Extraordinary Item | - | - | - | - |
13 | Net Profit for the period [11-12] | 188.48 | 130.89 | 305.48 | 266.72 |
14 | Paid-up equity share capital [Face value Rs.10 per share] |
792.83 | 792.83 | 792.83 |
792.83 |
15 | Reserves excluding Revaluation Reserves as per balance sheet of previous accounting year |
- |
- |
- | 2,455.23 |
16 | Earnings Per Share [Face value Rs.10 per share] (not annualised/ in Rs.) | ||||
a) Basic | 2.38 | 2.01 | 3.85 | 4.42 | |
b) Diluted | 2.38 | 2.01 | 3.85 | 4.41 | |
17 | Public Shareholding | ||||
a) Number of Shares | 19,820,782 | 19,820,782 | 19,820,782 | 19,820,782 | |
b) Percentage of shareholding | 25% | 25% | 25% | 25% | |
18 | Promoters and Promoter group Shareholding | ||||
a) Pledged / Encumbered - No. of Shares | - | - | - | - | |
Percentage of shares (as a % of the total share holding of promoter and promoter group) | - | - | - | - | |
Percentage of shareholding (as a % of the total share capital of the company) | - | - | - | - | |
b) Non encumbered - No. of Shares | 59,462,218 | 59,462,218 | 59,462,218 | 59,462,218 | |
Percentage of shares (as a % of the total share holding of promoter and promoter group) | 100% | 100% | 100% | 100% | |
Percentage of shares (as a % of the total share capital of the company) | 75% | 75% | 75% | 75% |
Consolidated Segment Revenue and Results | ||||
(Rs in million) | ||||
Particulars | For Quarter ended 31st March 2011 | For Quarter ended 31st March 2010 | For year ended31 March 2011 | For Year ended 31 March 2010 |
(Unaudited) | (Unaudited) | (Unaudited) | (Audited) | |
Segment Revenue | ||||
Animation | 752.04 | 582.48 | 1,841.45 | 1,523.65 |
Gaming | 0.52 | 12.24 | 11.51 | 15.99 |
Distribution | 25.34 | 158.28 | 222.75 | 215.10 |
Net Income from Operations | 777.90 | 753.00 | 2,075.71 | 1,754.74 |
Segment Results | ||||
Animation | 744.64 | 307.27 | 1,272.88 | 809.30 |
Gaming | (1.07) | 5.20 | 6.30 | 6.28 |
Distribution | (19.86) | (12.44) | 71.27 | 112.29 |
Unallocated expenses | (506.74) | (132.26) | (883.92) | (602.92) |
Segment Results before Interest and Finance Expense and Tax from each segment | 216.97 | 167.77 | 466.53 |
324.95 |
Less: Interest and Finance Expense | (26.19) | (19.29) | (97.30) | (56.44) |
Profit before tax | 190.78 | 148.48 | 369.23 |
268.51 |
Less: Tax expense | 2.30 | 17.59 | 63.75 | 1.79 |
Net Profit for the period | 188.48 | 130.89 | 305.48 | 266.72 |
Capital Employed | ||||
Animation | 1,176.62 | 893.66 | 1,176.62 | 893.66 |
Gaming | - | 8.52 | - | 8.52 |
Distribution | 57.07 | 1,242.18 | 57.07 | 1,242.18 |
Unallocated | 2,319.86 | 1,103.70 | 2,319.86 | 1,103.70 |
Total | 3,553.55 | 3,248.06 | 3,553.55 | 3,248.06 |
Notes: | ||||
1) Unaudited Consolidated Statement of assets and liabilities as at 31 March 2011 |
| |||
(Rs in million) |
| |||
Particulars | As at 31 March 2011 | As at 31 March 2010 |
| |
(Unaudited) | (Audited) |
| ||
1 | Shareholders' Funds |
| ||
(a) Share Capital | 792.83 | 792.83 |
| |
(b) Reserves and Surplus | 2,760.72 | 2,455.23 |
| |
| ||||
2 | Loan Funds |
| ||
Secured Loans | 1,391.92 | 470.55 |
| |
Unsecured Loans | 195.00 | 118.39 |
| |
| ||||
3 | Deferred Tax Liability | 34.69 | - |
|
| ||||
TOTAL | 5,175.16 | 3,837.00 |
| |
| ||||
4 | Fixed Assets | 3,292.59 | 1,591.77 |
|
5 | Investments | 256.82 | 870.00 |
|
| ||||
6 | Current Assets, Loans and Advances |
| ||
a)Sundry Debtors | 960.71 | 831.27 |
| |
b)Unbilled Revenue | 362.58 | 239.15 |
| |
c)Cash and Bank Balances | 822.73 | 582.33 |
| |
d)Loans and Advances | 165.61 | 172.06 |
| |
2,311.63 | 1,824.81 |
| ||
| ||||
7 | Less: Current Liabilities and Provisions |
| ||
a)Current Liabilities | 549.41 | 346.89 |
| |
b)Provisions | 136.47 | 102.69 |
| |
685.88 | 449.58 |
| ||
| ||||
8 | Net Current Assets | 1,625.75 | 1,375.23 |
|
| ||||
TOTAL | 5,175.16 | 3,837.00 |
| |
2) The above unaudited consolidated financial results have been reviewed by the Audit Committee and approved by the Board of Directors of the Company at its meeting held on 10 May 2011. |
3) The "Unaudited Consolidated Financial Results" have been subjected to the Limited Review by the Statutory Auditors of the Company. |
4) The financial results are prepared in accordance with the principles and procedures for the preparation and presentation of consolidated financial statements as set out in the Accounting Standard on "Consolidated Financial Statements" mandated by Rule 3 of the Companies (Accounting Standards) Rules, 2006, the provisions of the Companies Act, 1956 and guidelines issued by the Securities and Exchange Board of India. |
5) Pursuant to Clause 41 of the Listing Agreement, the Company opted to publish only the Consolidated Results of the Company. Investor can view the Standalone results of the Company at "www.dqentertainment.com" as well as the website of BSE (www.bseindia.com). |
6) Certain standalone information of the Company : |
Particulars | For Quarter ended 31 March 2011 | For Quarter ended 31 March 2010 | For Year ended 31 March 2011 | For Year ended 31 March 2010 |
Turnover (Net Sales) | 538.99 | 553.01 | 1,616.97 | 1,481.15 |
Profit Before Tax | 104.28 | 82.39 | 178.46 | 194.41 |
Profit After Tax | 109.83 | 74.23 | 140.48 | 202.14 |
7) The details of funds raised through Initial Public Offering (IPO) and utilisation of said funds are as follows:
(Rs in million) | ||
Particulars | Amounts | |
Funds received through IPO | 1,539.59 | |
Utilisation of funds | ||
Investment in co-production agreements, focusing on IP content creation | 479.51 | |
Development of office premises and production facilities | 253.38 | |
Investment in Subsidiary (DQ Entertainment (Ireland) Limited) | 129.46 | |
General corporate purpose | 253.42 | |
Issues expenses | 95.45 | 1,211.22 |
Total funds utilised up to 31 March 2011 | 1,211.22 | |
Investments* | 99.96 | |
Fixed Deposits | 228.41 | |
Balance as on 31 March 2011 | 328.37 | |
*As on 31 March 2011 unutilised funds have been temporarily invested in short term liquid scheme of mutual funds.
8) Information on investor complaints pursuant to Clause 41 of the Listing Agreement for the quarter ended 31 March 2011.
Nature of complaints | Opening Balance | Additions | Disposal | Closing Balance |
Non - receipt of refund order | - | 5 | 5 | - |
9) In continuation of the quarter and the nine months ended 31 December 2010, the auditors of the Company have invited attention in their review report for the quarter and year ended 31 March 2011 that the Company has transactions with an entity located outside India which in the auditors opinion is prima facie controlled by the Company, as per Accounting Standards (AS) 21 - "Consolidated financial statements". In this respect the Company has sought for relevant financials and other details from the entity and on receipt of the information the impact will be appropriately addressed.
10) Corresponding year and quarter end figures have been regrouped / reclassified wherever necessary.
Contacts:
DQ Entertainment International Tapaas Chakravarti
Rashida Adenwala
| Tel: +91 40 2355 3726/27
|
Seymour Pierce Ltd (Nominated Adviser and Broker) Nandita Sahgal / David Foreman (Corporate Finance) Leti McManus (Corporate Broking)
| Tel: +44 (0)207 107 8000 |
Buchanan (Financial Public Relations Advisers) Mark Edwards / Jeremy Garcia | Tel: +44 (0)20 7466 5000 |
Related Shares:
DQE.L